Any trader that spends time researching the great traders of the past is bound to come across the name of W.D. Gann. Gann was a legendary trader in the early part of the last century. He became a legend through his many market predictions that would prove to be true, along with the incredible amount of wealth acquired through his methods. Gann was very secretive about his trading methods, and is reported to have been concerned about his image if people discovered his methods. The book Quantum Trading published by Wiley effectively and convincingly suggests turning away from linear two-dimensional thought, and embracing a probabilistic quantum base, which will reap greater rewards for a speculator in the markets.
Does reading about sun spots and the possible effects of solar wind on the pricing of the markets give you pause in questioning the source? If you read that high sun spot activity has a correlation to the stock market performing below average and you questioned the source of the so-called “science behind the assertion,” you would likely not be alone. When I read something like that, I picture someone in the basement of their home with an Ouija board pulling stock prices out of the air, a method which is without merit. What if I added that it was not a self- described “guru of trading”, but rather the Atlanta Federal Reserve that published the results? Having an open mind to new ideas in the way things work in the markets will aid the reader in absorbing the material. It shouldn’t be required however, as the entire math and methods of calculation are included within the text.
Even with a track record that took from a childhood of poverty as a poor farm boy to one of the richest men in the United States, many today dismiss his methods as more superstition than a true science. With Quantum Trading, Oreste breaks the chains of limitations so many traders put upon themselves through methods and belief they have about the market and how it functions. In a step-by-step technique that is well considered and easy to comprehend, Oreste lays out the processes for calculating each method and indicator. By the end of the book, I understood the concepts and theory of the approach. I found the non-subjective methods used to be highly refreshing in a trading book. So many books on the market do not provide clear and concise rules of entry and exit, allowing for interpretation that is often useless to the reader.
In combination with support and resistance lines, the time elements of market prices are incorporated to fulfill the last element needed for market timing of entries. There is a chapter that describes the basics of options (and a little beyond the basics, which is a bonus, as every option trader needs to know the behavior of options and terminology associated with it), along with the advantages and drawbacks to utilizing options as a trading vehicle. What I found particularly helpful to a new trader is not so much the instructions what to do, but of what not to do. Most trading books fail to dedicate insight to all the landmines traders face and how to avoid many of them. Traders by nature are always exploring a new way to catch a mouse, it’s part of the job. Simply learning some of the pitfalls without losing any money make the book worth reading.
Readers will learn concepts like Gann angles, price and time in equilibrium, price-space-harmonics with quantum properties, theories, and concepts, including Einstein’s theory of relativity, in ways that may be useful to traders. The book is well-written (although at times repetitive in terminology), and is obviously produced by an author with vast experience in the trenches of the trading world. The trading experience of Oreste shines through in a mentoring style that leaves the reader with a new and different set of trading tools than they likely had before reading.
I am glad I read Quantum Trading, and recommend it to any trader looking for a mechanical, systematic approach to read it as wel